Correlation Between Petrobras Argentina and Hess
Can any of the company-specific risk be diversified away by investing in both Petrobras Argentina and Hess at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Petrobras Argentina and Hess into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petrobras Argentina SA and Hess Corporation, you can compare the effects of market volatilities on Petrobras Argentina and Hess and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Petrobras Argentina with a short position of Hess. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrobras Argentina and Hess.
Diversification Opportunities for Petrobras Argentina and Hess
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Petrobras and Hess is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Petrobras Argentina SA and Hess Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hess and Petrobras Argentina is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Petrobras Argentina SA are associated (or correlated) with Hess. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hess has no effect on the direction of Petrobras Argentina i.e., Petrobras Argentina and Hess go up and down completely randomly.
Pair Corralation between Petrobras Argentina and Hess
If you would invest 14,774 in Hess Corporation on January 24, 2024 and sell it today you would earn a total of 849.00 from holding Hess Corporation or generate 5.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Petrobras Argentina SA vs. Hess Corp.
Performance |
| Timeline |
| Petrobras Argentina |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hess |
Petrobras Argentina and Hess Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petrobras Argentina and Hess
The main advantage of trading using opposite Petrobras Argentina and Hess positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrobras Argentina position performs unexpectedly, Hess can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hess will offset losses from the drop in Hess' long position.| Petrobras Argentina vs. Kura Sushi USA | Petrobras Argentina vs. Dine Brands Global | Petrobras Argentina vs. Wingstop | Petrobras Argentina vs. Ultra Clean Holdings |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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